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Consumers repay £400m to banks

December sees largest net repayment of unsecured loans since records began as appetite for borrowing falls

A record £400m was repaid from personal borrowings in December as consumers cut their debts, the Bank of England said on Tuesday.

The net repayment of unsecured loans was the largest since records began in 1993 as heightened concerns about the wider economy and jobs made consumers lose their appetite for borrowing.

Credit card borrowing was also flat for the third consecutive month, according to the latest Bank of England figures.

Mortgage approvals rose to a two-year high in December, but analysts said the housing market remains weak compared with long-term norms. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds